This margin calculator converts between cost, price, margin percentage, and markup percentage — two ratios people constantly confuse.
Finance
Margin Calculator
Calculate cost, price, profit and margin.
Calculator
About this calculator
Formula notes
margin = (price − cost) / price; markup = (price − cost) / cost; price = cost / (1 − margin).
Worked examples
- Example: cost 60 and price 100 gives a 40% margin but a 66.7% markup — not the same number.
- An item costing $72 and selling for $120 earns $48 gross profit, a 40% margin on sales and a 66.67% markup on cost.
How to use it
- Enter cost and either price or margin.
- Read margin and markup side by side.
- Use price = cost / (1 − margin) to hit a target margin.
Frequently asked questions
Why can't margin exceed 100%?
Because cost is divided by price; markup, divided by cost, can exceed 100%.
How do I price for a 30% margin?
price = cost / 0.7, so a 70 cost item sells at 100.
Limits and interpretation
- Gross margin excludes operating expenses, tax, financing, returns, discounts, platform fees, and inventory losses unless included in cost.
- Margin and markup use different denominators and must not be compared as if they were the same percentage.